MACRO ECONOMIC NEWS

THE JOY OF CELEBRATION IS INTERNAL AND EXTRAORDINARY. WISHING A FESTIVE DAY AHEAD. 

Macro Economic News 02 Apr 2020

 

The same stimulus that rich countries lean on could worsen poor economies. India's labourers and waste pickers - most of them homeless or too poor to afford a meal - are among the hardest hit by three-week nationwide lockdown while Indian Society of Labour Economics urges govt to give cash transfers, free ration to informal worker household. Four new states imposed sweeping stay-at-home directives putting over 80% of Americans under lockdown. Factories across the U.S., Asia and Europe cut output and jobs at the fastest pace since the global financial crisis, a sign the global economy has entered a deep freeze as governments lock down their populations. The new pandemic is amplifying gains for businesses that cater to customers online, while businesses reliant on more traditional models fight for survival. Chinese factory activity expanded in March, following sharp contractions in January and February, but sluggish demand damped hopes for a speedy recovery. European factory output plummets while developing countries scramble for funds to stave off virus impact whereas Job losses in Europe and US hit financial crisis level. BlackRock expects that the world economy could contract by 11% in first half 2020. Fitch expects that Indian fiscal deficit may shoot to 6.2% although Govt sticks to BE to borrow Rs 4.88 lakh cr in H1FY21. ICRA says downgraded Rs 7-trn debt as credit quality of Indian firms worsened while MCA gives ‘deactivated’ DINs an opportunity to regularise without fee.

 

FINANCIAL TIMES

[I]  Global shares tumble after dire warnings on virus toll

[I]  Landlords and tenants feel the pain as coronavirus hits rents

[I]  France proposes EU coronavirus rescue fund

[I]  Developing countries scramble for funds to stave off virus impact

[I]  Argentina postpones debt restructuring deadline

[I]  European factory output plummets as coronavirus shutdown bites

[I]  Job losses in Europe and US hit financial crisis level

 

REUTERS

[I]  India's homeless stranded by coronavirus lockdown

[I]  Australia PM Morrison announces $973 million package for childcare sector

[I]  No safety net for millions in black economy amid Europe's lockdown

[I]  Most Americans huddle indoors as coronavirus deaths keep spiking

[I]  Factory activity plunges as coronavirus shock deepens

[I]  World economy could contract by 11% in first half 2020 - BlackRock managing director

 

BLOOMBERG 

[I]  Trump’s Meeting With Drillers Couldn’t Give Oil Futures a Boost

[I]  The Same Stimulus That Rich Countries Lean On Could Worsen Poor Economies

[I]  Shipping U.S. Oil to China Now Costs Half as Much as the Cargo

[I]  Sharp Slowdown Seen in Asia IPO Deals with Stocks in Bear Market

[I]  V, L or ‘Nike Swoosh’? Economists Debate Shape of Global Recovery

[I]  RBNZ Urged to Come Out ‘All Guns Blazing’ on QE to Cut Rates

[I]  Next Stop Financial Crisis, Dire Trump, Japan Reinvents: Eco Day

[I]  China-Focused Hedge Funds Risk a Wave of Redemptions

[I]  Big Banks Get Fed Blessing to Extend Leverage

[I]  Japan Looks to Reinvent Its Cash Handouts for Better Results

 

WALL STREET JOURNAL

[I]  U.S. Manufacturing Activity Contracts as Virus Hits Factories

[I]  Pandemic Widens Divide Between Online, Traditional Businesses

[I]  Fed Temporarily Eases Capital Requirements for Big Banks

[I]  Treasury Department Selects Wall Street Banks to Advise on Airline Aid

[I]  Who’s Hiring and Who’s Firing

[I]  Transcript: WSJ Interview With Boston Fed President Eric Rosengren

[I]  Workers Return to China’s Factories, but Coronavirus Hurts Global Demand

 

BUSINESS LINE

[I]  At ₹97,597 cr, GST mop-up dips 8% in March

[I]  India’s Budget under strain on Day One of the new fiscal year

[I]  Lockdown: Passengers can book train, air tickets from April 15 onward

[I]  Fiscal deficit may shoot to 6.2%: Fitch

[I]  MCA gives ‘deactivated’ DINs an opportunity to regularise without fee

 

ECONOMIC TIMES

[I]  How do we keep paying salaries: Modi gets a Covid SOS

[I]  India's sugar production declines 22 pc to 233 lakh tonnes

[I]  India uses WTO peace clause for higher rice sops

[I]  Govt sticks to BE to borrow Rs 4.88 lakh cr in H1FY21

[I]  Indian Society of Labour Economics urges govt to give cash transfers, free ration to informal worker household

[I]  RBI announces more measures to deal with economic fallout of COVID-19

 

BUSINESS STANDARD

[I]  Coronavirus lockdown: Mumbai's 191 'containment' zones under lens

[I]  Private hospitals gearing up to fight coronavirus battle as cases rise

[I]  Lockdown crushes Motown: Sales of top auto makers decline 64% in March

[I]  Firms looking at time, cost relief while invoking force majeure

[I]  Downgraded Rs 7-trn debt as credit quality of Indian firms worsened: ICRA

[I]  The show must stream on: Media firms ensure connectivity in lockdown

[I]  Direct tax mop-up falls short by record Rs 1.75 trn of revised estimates

[I]  Centre unveils plan to deal with 'psycho-social issues' of migrant workers

 

MARKETS (09:30 am)

[I]  SGX NIFTY Fut: 8143;  USDINR DGCX: 77.3625;  DJIA Mini: 21050;  FTSE 100 Fut: 5427;  NIKKEI 225 Fut: 17980;  EUR-USD: 1.0938; Crude Oil (WTI): 21.24;  Gold (Spot): 1584

 

Best Regards, ARBIND

02 Apr 2020